Rivals or Partners? Evidence from Europe’s International Private Equity Deals


Tykvová, Tereza ; Schertler, Andrea


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URL: http://ub-madoc.bib.uni-mannheim.de/1477
URN: urn:nbn:de:bsz:180-madoc-14778
Document Type: Working paper
Year of publication: 2006
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: G24 F21 ,
Subject headings (SWD): Beteiligungsfinanzierung , Syndikat , Entstehung , Supranationalität
Keywords (English): Private Equity , Internationalization , Transnational Syndication
Abstract: Cross-border private equity deals have increased substantially in recent years. This study looks at the issue of how European investors view their local counterparts in the portfolio companies’ home countries. If they regard them as rivals, they will target countries that lack a private equity industry. If they view them as (potential) partners, however, they will prefer investing in countries with a mature private equity industry. We test these two contradictory hypotheses by using a unique cross-border country dataset on international investments of European private equity investors. We find that European investors redominantly invest in countries with more mature private equity industries. The presence of local private equity investors also determines how European investors exploit differences in growth rates between the target country and their home country: European private equity investors respond more strongly to given growth differentials if investments can be syndicated with an experienced local investor. In our reading, these findings are in line with the partnership hypothesis.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Tykvová, Tereza ; Schertler, Andrea (2006) Rivals or Partners? Evidence from Europe’s International Private Equity Deals. Open Access [Working paper]
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